The generation poorer than their parents

vivatifosi

Most decades, with the possible exception of the 60s and 90s, have seen problems.

Those setting up home in the post war years would have done so at a time that up to a quarter of the housing stock had been destroyed/damaged in parts of the country, including London. After the war and into the 1950s, rationing was still in place for many, meaning limited choices for those with their first homes to furnish.

In the 1970s, the three day week scared the heck out of my parents who were trying to keep a roof over our heads while managing on massively reduced wages. In the late 80s, house prices rocketed as did the interest rate, many paid over 10% for years. Finally in the 2000s, house prices again rocketed out of the reach of many.

To say that there have been long benign periods just hasn't been true. Over the average lifespan of a mortgage we are all likely to go through a recession and house price inflation, whenever we are born. Timing things right has often been a nightmare. There is no such thing as the golden age.

ILW

Or

5 years at work around 10kpa = £50k
Car at £200pm for 5 years = £12k
Phone at £25pm for 5 years = £1500

Bloody hell, by living a 70s style life you could have around £65,000 in the bank to put towards your first property by the time you are 21. Stop moaning about how hard it all is.

MRSTITTLEMOUSE

vivatifosi wrote: »

Most decades, with the possible exception of the 60s and 90s, have seen problems.

Those setting up home in the post war years would have done so at a time that up to a quarter of the housing stock had been destroyed/damaged in parts of the country, including London. After the war and into the 1950s, rationing was still in place for many, meaning limited choices for those with their first homes to furnish.

In the 1970s, the three day week scared the heck out of my parents who were trying to keep a roof over our heads while managing on massively reduced wages. In the late 80s, house prices rocketed as did the interest rate, many paid over 10% for years. Finally in the 2000s, house prices again rocketed out of the reach of many.

To say that there have been long benign periods just hasn't been true. Over the average lifespan of a mortgage we are all likely to go through a recession and house price inflation, whenever we are born. Timing things right has often been a nightmare. There is no such thing as the golden age.

Its true when you say that no matter when you are born you will have some problems.
My parents married in the early 50s and lived in with my grandparents,rented two rooms from them while they saved for a deposit.It took them 5 years and I had already been born by the time they got their own house.
We married at the beginning of the seventies and rented for years till we saved a deposit then the interest rates soared,negative equity happened but we just had to ride the storm till things settled down.
No one has it easy,it just it looks easy when your'e on the outside looking in.
When you get in there you realise what a struggle it can be.

A._Badger

Can someone suggest when children haven't been less well off than their parents, on average?

adam611

I don't see how today's situation is any different from when my folks were buying their house. They had to get a deposit for the house they bought and the interest rate was only about 12.5% higher than it is today. My grandad bought his house from his own father and when he moved in his dad had taken all the plug sockets and light fittings with him. Things may have cost less but people earned a lot less so its all relative.

I consider myself luckier than my parents and grandparents ever were, the opportunities available nowadays are way beyond anything that was available then. Opportunities are out there even now not always easy to get hold off but no one ever said life was supposed to be easy.

And please can no one mention people living in poverty, I know some people in the UK have it hard BUT I've worked in places like Africa and have seen REAL poverty so find it hard when people with free medical care, schooling etc (everyone in the UK) are said to be living in poverty!

shortchanged_2

adam611 wrote: »

I don't see how today's situation is any different from when my folks were buying their house. They had to get a deposit for the house they bought and the interest rate was only about 12.5% higher than it is today.

This is part of the problem of today. With Interest rates at rock bottom the housing market is a ticking time bomb.

The fact that house prices remain so stubbornly high is going to be a major problem for people paying these prices because when interest rates do go up the interest on those massive mortgages that people will have is going to be colossal.

That's what gives the false impression that house prices are currently affordable because they are based on rock bottom interest rates.

StevieJ

shortchanged wrote: »

This is part of the problem of today. With Interest rates at rock bottom the housing market is a ticking time bomb.

The fact that house prices remain so stubbornly high is going to be a major problem for people paying these prices because when interest rates do go up the interest on those massive mortgages that people will have is going to be colossal.

That's what gives the false impression that house prices are currently affordable because they are based on rock bottom interest rates.

When the market topped out in 2007 weren't base rates 5.75%?

shortchanged_2

StevieJ wrote: »

When the market topped out in 2007 weren't base rates 5.75%?

Yes but don't forget household income has actually gone down since then and many people taking mortgages out back then were stretching themselves to the hilt anyway.
Also didn't house prices crash somewhat in 2007-2008?

Ronaldo_Mconaldo

I don't understand why people think they have an automatic right to things. I mean whose to say that you should have a better quality of life than your parents? Where is that written? Rather than putting up with it and trying to improve the lives of the next generation all you'll be doing is teaching them that if you don't get what you want then you should have a big strop on the floor like a 5 year old.

Why are we even discussing this on an internet forum? Why don't those feeling aggrieved go and ask their parents? Or better yet go and get a better job or a better education in order to get a better job. Just stop complaining all the time, it's embarrassing.

HAMISH_MCTAVISH

shortchanged wrote: »

Yes but don't forget household income has actually gone down since then

Perhaps if you include the households of pensioner's reliant on interest for a significant portion of income. But they tend not to have mortgages.

For households in employment wages have kept growing throughout on average, which erodes the real value of the debt.

and many people taking mortgages out back then were stretching themselves to the hilt anyway.

And have been rewarded with several years of rock bottom rates and wage growth. Hence most are no longer "stretched to the hilt".

Also didn't house prices crash somewhat in 2007-2008?

Excellent point.

So houses are now even more affordable.